For anyone whose Putney Vale flat is held on a long lease, our message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Putney Vale with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service will provide you enhanced control over the value of your Putney Vale leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jamie, came precariously close to the eighty-year threshold with the lease on his purpose- built flat in Putney Vale. Having purchased his property two decades ago, the unexpired term was of minimal importance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Jamie extended the lease just under the wire last May. Jamie and the landlord who owned the flat above subsequently settled on sum of £6,000 . If the lease had descended below 80 years, the figure would have become more exhorbitant by a minimum £900.
In 2011 we were called by Dr Sebastian Pérez who, having was assigned a lease of a recently refurbished flat in Putney Vale in October 2008. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Identical properties in Putney Vale with a long lease were valued around £260,200. The average amount of ground rent was £65 billed per annum. The lease lapsed on 3 September 2091. Having 66 years left we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Putney Vale premises is 158 West Hill in November 2010. the Tribunal held that the premium to be paid for the freehold reversion should be £99,650 This case was in relation to 7 flats. The remaining number of years on the lease was 75.88 years.